Quote from lilduckling:
dear sir....i just shorted LXK earlier this morning @ 69.53
look at the MAs on the 5min and 60min charts and you tell me what effect they had on the price... even 200ma had little effect.
Yes there is a reason behind this play....but my point is...dont rely on MAs to effect price.
My little brain does look at MAs...but only with lots of other factors in play....MAs only small consideration...Support/ressistance have more bearing imo.
New traders looking at this play on the hourly chart may be tempted to go long when price was at 20 ma...since hourly chart looked so good....they wouldve been down .80 by now.

